Fifty years in Wall Street
more safety than in the streets, which will bring to them
reflection. They will then soon become satisfied that they are
the aggrieved parties, and the not unlikely result will be their
turning upon their leaders, who have deceived them.
“There have been numerous vacancies created by the strikers
voluntarily resigning. There has been no difficulty in filling
these vacancies by those who are equally capable, if not more
so, from other countries flocking to our shores. The steam ferry
between this country and Europe has demonstrated this by the
steamer just arrived in six days and ten hours from European
shores to our own. As the separation between the oppressed
operatives of the Old World and America is thus reduced to
hours, Europe will quickly send to us all the labor we need to
meet all such emergencies.
“The laboring man in this bounteous and hospitable country has
no ground for complaint. His vote is potential, and he is
elevated thereby to the position of man. Under the government of
this nation, the effect is to elevate the standard of the human
race and not to degrade it. In too many other nations it is the
reverse. What, therefore, has the laborer to complain of in
America? By exciting strikes and encouraging discontent he
stands in the way of the elevation of his class and of mankind.
“The tide of emigration to this country, now so large, makes
peaceful strikes perfectly harmless in themselves, because the
places of those who vacate good situations are easily filled by
newcomers. When disturbances occur under the cloak of strikes it
is a different matter, as law and order are then set at
defiance. The recent outbreaks in Chicago, which resulted in the
assassination of a number of valiant policemen through a few
cowardly Polish Nihilists firing a bomb of dynamite in their
midst, was the worst thing that could have been done for the
cause of the present labor agitation, as it alienates all
sympathy from them. It is much to the credit, however, of
Americans and Irishmen that, during the recent uprisings, none
of them have taken part in any violent measures whatsoever, nor
have they shown any sympathy with such conduct.
“If the labor troubles are to be regarded as only a transient
interruption of the course of events, it is next to be asked,
what may be anticipated when those obstructions disappear? We
have still our magnificent country, with all the resources that
have made it so prosperous and so progressive beyond the record
of all nations. There is no abatement of our past ratio of
increase of population; no limitation of the new sources of
wealth awaiting development; no diminution of the means
necessary to the utilization of the unbounded riches of the
soil, the mine, and the forest. Our inventive genius has
suffered no eclipse. In the practical application of what may be
called the commercial sciences, we retain our lead of the world.
As pioneers of new sources of wealth, we are producing greater
results than all the combined new colonizing efforts which have
recently excited the aspirations of European governments. To the
over-crowded populations of the Old World the United States
still presents attractions superior to those of any other
country, as is demonstrated by the recent sudden revival of
emigration from Great Britain and the continent to our shores.”
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CHAPTER XLVI.
AN IMPORTANT SYNOPSIS.
A RESUME IN BRIEF OF THE LEADING EVENTS CONNECTED WITH WALL STREET
AFFAIRS FOR SEVENTY-SEVEN YEARS.
_December, 1816._—The first savings banks in the United States went into
operation.
_July, 1820._—Great financial distress throughout America. The causes
were excessive importations and a deranged currency.
_August, 1833._—There was great commercial distress, caused by
contraction by the United States Bank. The bank defended its course on
the ground of the evident hostilities of the Administration, the public
deposits, amounting to $10,000,000, having been withdrawn by order of
the President.
_May, 1837._—In this year commercial distress prevailed throughout the
United States. On May 10th all the banks in New York city, by common
consent, suspended specie payments, banks throughout the country
following the example. In New York about 300 large failures took place.
In Boston 168 failures were reported. In New Orleans houses stopped
payment owing an aggregate of $27,000,000.
_May, 1838._—The banks of New York and New England resumed payment after
the suspension due to the panic of 1837. The Philadelphia banks resumed
in August, 1838, and in January, 1839, there was nominal resumption
throughout the country.
_July, 1840._—The bill organizing the United States Sub-Treasury became
a law. The act was repealed in 1841, but was re-enacted in 1846.
_October, 1842._—The first sub-marine telegraph cable, the invention of
Prof. Morse, was laid between Governors’ Island and the Battery, New
York, October 18th.
_January, 1844._—The first telegraph line in the United States was
erected. The telegraph was invented by Morse in 1837.
_August, 1851._—The depression of this year reached its height on the
13th. A bad credit system had been in vogue, trade with California had
not met expectations, imports had been large, exports of gold heavy,
cotton declined in Europe, the banks contracted, property was sacrificed
to raise ready money, mercantile credit was disturbed everywhere, and
distress was general in all the cities. In Wall Street large blocks of
stock were unloaded and the market was broken. Erie went from 90 to 68¾.
Later in the month money became easier, prices advanced, and the market
resumed its ordinary aspect.
_October, 1851._—Panic regarding the value of State money. The
Metropolitan Bank made war on the country banks to compel them to
deposit with it against their notes, which were extensively circulated
in the city. After receiving their bills the Metropolitan Bank demanded
their redemption in specie. This led to many suspensions. The bills were
well secured by State stocks, and the Metropolitan continued to receive
them. As brokers refused to take State moneys of any kind there was a
rush to the Metropolitan, and a panic prevailed. Ultimately the brokers
bought the bills at a discount and made large profits. Their purchases
gradually restored confidence, but not before four country banks had
failed.
_July, 1853._—A panic in the stock market in consequence of bank
contraction. The State Legislature enacted that the banks should publish
weekly, in the New York _Times_, statements of their condition. In
preparing for this statement the banks called in a large portion of
their loans, and ran after each other for specie. The panic was of short
duration.
_October, 1853._—Simeon Draper, a railroad banker, failed.—Stocks were
depressed on the 19th, in consequence of bank contraction. There were
several failures.
_January, 1854._.—California defaulted in its interest on the 1st, and
there was much alarm in financial circles in consequence.
_February, 1854._—Heavy failures in California.
_May, 1854._—The New York, Newfoundland & London Telegraph Company was
organized, and was the first company to attempt Atlantic cable
telegraphy.
_July, 1854._—Robert Schuyler, President of the New York & New Haven
Railroad Company, fraudulently issued nearly $2,000,000 stock of the
company. About the same time fraudulent entries, made by Secretary Kyle,
were discovered in the stock ledger of the Harlem Company, amounting to
about $470,000. Frauds were also discovered in the affairs of the Parker
Vein and the Vermont Central railway companies. In consequence there was
a rapid decline in the stock market, and many suspensions occurred in
New York, Boston and Philadelphia.
_September, 1854._—A severe twist in Erie stock on the 13th.
_October, 1854._—Frauds on the Ocean, American Exchange and National
banks were discovered.
_December, 1854._—There was a severe run on the savings banks of the
city of New York on the 9th.
_September, 1855._—A financial panic in San Francisco and many failures
of prominent bankers.
_September, 1856._—Charles B. Huntington committed forgeries amounting
to $15,000,000 or $20,000,000. The forgeries were used as collateral
security for raising money, and for a time were taken up before
maturity.
_April, 1857._—Freight-train men on the Baltimore & Ohio struck. Trains
were molested and many fights occurred. The military were called out and
a desperate fight ensued, in which many were killed and wounded.
_August, 1857._—The financial panic of this year began on the failure of
the Ohio Trust Company, with liabilities about $7,000,000. Banks either
failed or suspended specie payments everywhere. The New York banks
resumed in December. Business was generally prostrated until the
following spring, when improvement became perceptible.
_July, 1860._—Congress authorized a war loan of $250,000,000. The
National debt was $64,640,838.11. It reached $2,756,431,571, its
greatest point, in 1885.
_August, 1860._—Treasury notes to the amount of $50,000,000 were
authorized by Congress.—The first well ever sunk for oil, and the first
petroleum ever obtained by boring. The well was at Titusville, Oil
Creek, Pa. It gave 1,000 barrels a day. This was the beginning of the
petroleum business.
_December, 1860._—The Southern banks suspended specie payment on the
12th.
_April, 1861._—The lowest price at which United States bonds sold during
the war was 75 for the 5s of 1874, quoted in this month.
_December, 1861._—The National Bank system was recommended by Secretary
Chase.—A premium for gold was quoted at the New York Stock Exchange for
the first time, on the 30th.
_April, 1862._—Gold was first quoted at a premium on the 12th, and by
October 1 it had advanced to 123.
_February, 1864._—Speculation in stocks was “rampant” and “wild.”
_March, 1864._—There was a panic in the coal stocks on the 10th.—The
month was noted for a rapid rise in gold.
_April, 1864._—A semi-panic in Wall Street on the 18th.
_June, 1864._—National currency to the amount of $300,000,000 was
authorized by Congress. The full amount was issued before the close of
1867.
_August, 1864._—Gold touched 261¾, its highest point.
_July, 1865._—The Stock Exchange made a rule inflicting a penalty on
members who attended Gallaher’s up-town night Exchange.
_August, 1865._—Edward B. Ketchum, a junior partner in a prominent
banking house in New York, forged gold certificates to the extent of
$1,500,000, and they were negotiated at the banks. In addition he
abstracted more than $3,000,000 from the vaults of the firm. The firm
failed.
_October, 1865._—Call loans were made as high a per cent. and a heavy
commission added. Tight money checked a rise in stocks. Money was wanted
in the West for the moving of crops. Relief came on the demand from the
West subsiding, and by temporary loans from the Sub-Treasury to the
banks.
_November, 1865._—Prairie du Chien common stock was cornered. On the 6th
29,000 shares were bought at about 40. The trap being sprung 200 and
more was demanded, and the shorts settled at rates ranging from 110 to
210. There were several failures. It opened on a Monday at 96; on
Tuesday it ranged between 160 and 225, and closed on Saturday at 110.
_December, 1865._—The new Stock Exchange building was opened for
business on the 9th.
_February, 1866._—Toward the close, on February 20th, everybody seemed